Unit 10 P3

Unit 10 P3

I will now explain the knowledge and skills needed to make personal sales including the relevant consumer legislation.

Sales person should have these skills and knowledge: good sales habits, good sales techniques, knowledge about the stages of personal selling, product knowledge, have to be keeping up to date, have to have the ability to close a sale, be inwardly motivated to sell, have knowledge about types of contracts, knowledge about  Sale of Goods Act 1994 /Sale and Supply of Goods Act 1994 / Supply of Goods to Consumers Regulations 2002, Supply of Goods and Services Act 1982, Consumer Protection Act 1987, Trade Description Act 1968, Consumer Protection [Distance Selling] Regulations Act (2005), Consumer Credit Act 1974. 

Good sales habits 

Firstly, you should greet, contact or respond to every customer positively and promptly. Do not say ‘Can I help you’ because the customer can easily say ‘no’, you should better say ‘Good morning/afternoon’ and smile. You should understand the customer’s body language to see what products they are interested in, then check if the customer is a serious buyer by spending time with them and ask open questions to find out what they want.

It is also very important to listen to the customer and be honest. You should keep explanations clear and simple, sell the benefits of the product or service and believe in what you are selling.

Good sales person should a fallback plan, know how to up-sell or cross-sell and use customer feedback to suggest improvements to sales techniques and customer service. Know when to back-off or change sales strategy and shouldn’t make promises that cannot be kept. Sales person should also know how to close the engagement in a friendly manner, whether a sale is made or not, so the customer will be more likely to return. You should also record customer details and follow up promptly to any after-sales requests e.g. delivery of goods.

Good sales techniques

Sales person should not to use cheap tricks or dishonesty to make a sale, as it’s unattractive to customers. You should also be continually focused on the needs and expectations of the customer and be able to move through the sales process effectively.

The Stages of Personal Selling

Firstly, sales person should be planning and preparing to sell, then - meeting and greeting the customer and developing a relationship with the customer. After that sales person should be identifying the customer’s needs and presenting, demonstrating and providing information, responding to objections. Sales person should be able to close the sale and follow up the sale.

Product knowledge

It is important for sales person to have good product knowledge, as expertise makes selling easier and more successful. The sales person should be interested in what they are selling and should know the full range of the products and services e.g. the features, performance and price. It is helpful to attach a relevant personal experience to the product knowledge.

Keeping up to date

Sales person should be aware of the most recent products and services being offered by the organisation, be aware of the product and services of competitors and the latest market trends.

The ability to close a sale

Closing a sale is the point when a sales person gets the customer to commit to the sale. Without this point the negotiations can go on forever. The ability to close a sale differentiates the professional from the amateur.

 

Being inwardly motivated to sell

Good sales person should be highly driven, self-motivated, keen to achieve, passionate about their work. Motivation can be driven by commission, sales targets, or career development.  Motivating and rewarding staff can make them feel appreciated and well rewarded for their efforts, enthusiastic about their job and eager to sell.

Sales contracts

Making a contract is then customers buy a product or service from a seller and sales contracts can be in writing or a verbal agreement. Sales contract in writing can be: through an order form, a sales contract, a receipt or a credit agreement.  Verbal contract is when a customer picks an item, offers to pay for it and the seller accepts their offer.  Contract can end in these ways:  by performance – when the product or service is accepted, the product or service is paid for and the ownership of the goods is transferred to the customer; by agreement - when the customer returns the product and receives a refund; by breach of contract- when the terms of the contract have not been met.

Sale of Goods Act 1994 /Sale and Supply of Goods Act 1994 / Supply of Goods to Consumers Regulations 2002

These laws state that a new or second hand product must be as described, of satisfactory quality and fit for purpose.

Supply of Goods and Services Act 1982

This act is covers customers against services that are provided.  It states that services should be for a reasonable charge, be completed within a reasonable time, be completed with reasonable care and skill and be completed using satisfactory materials.

Consumer Protection Act 1987

This Act relates to the price and safety of products.  It states that it is an offence to mislead a customer about the price of a product, exaggerate price discounts and supply unsafe goods.

Consumer Protection [Distance Selling] Regulations Act 2005

These laws are passed in 2000 and amended in 2005. They are protecting the consumer against products or services sold by, mail order, television, telephone, and fax/email. The Act stresses that customers must be provided with accurate product/service information, written confirmation after a purchase, a cooling-off period after the receipt of goods and a refund if goods are not received on time.

Consumer Credit Act 1974

This Act protects customers against credit loan agreements.  Businesses that offer loan agreements must be licensed to do so.  It also lenders to reveal to true cost of the loan, protects customers against extortionate interest rates, allows the customers to receive compensation from the lender if the goods are faulty and the damage is more than £100. It also provides a cooling-off period, prevents requests for early payment and enables customers to find out about their credit rating details held by the lender.

Trade Description Act 1968

This Act states that it is an offence to sell goods that have been wrongly described by the manufacturer. It is also offence to wrongly describe goods and make false claims for services, accommodation and facilities.

Sales person should have good specific skills and knowledge. Having these are very important for making sales. Knowing laws and regulations of selling is also very important – it helps to prevent misunderstandings between sales person and customer. It’s very useful to know them for all sales people and for organisations that are selling goods or services.